Long Wharf Hotel for $228.2 million or $568,000 per room
|SAN CLEMENTE, Calif., March 23, 2007 - Sunstone Hotel Investors, Inc.
(NYSE: SHO) today announced it has completed the
acquisition of the 402-room Boston Marriott Long Wharf Hotel located on the Boston Harbor Waterfront for $228.2 million or approximately $568,000 per room.
upon the hotel's current forecasts, the purchase price equates to approximately
13.8x 2007 EBITDA and 12.7x 2008 EBITDA (reconciliation to net income below).
Concurrent with the close of the acquisition, the Company closed on a mortgage
financing totaling $176.0 million at a fixed interest rate of 5.58%. The
loan is interest only for its life and matures in 2017. The balance of
the purchase price was funded with a draw on the Company's credit facility
which will ultimately be repaid through a partial settlement of the Company's
$111.0 million forward equity agreement.
About Sunstone Hotel Investors, Inc.
Sunstone Hotel Investors, Inc.
|Also See:||Sunstone Hotel Investors LLC and Tarsadia Hotels Expanding by Going After Weaker Hotels in Key Markets / Sandi Cain / June 2003|
|LaSalle Hotel Properties Acquires Boston's Harborside Hyatt Conference Center Hotel for $73.5 Million / June 1998|